Is Cerence a Better Buy Than Dell Technologies?
Dell Technologies surged 20% during the past Month. You may be tempted to buy more, or may want to reduce your exposure. But there is an entirely different perspective you might be missing. Is there a better alternative? Turns out, its peer Cerence gives you more. Cerence (CRNC) stock offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Dell Technologies (DELL) stock, suggesting you may be better off investing in CRNC
- CRNC’s quarterly revenue growth was 126.1%, vs. DELL’s 39.5%.
- In addition, its Last 12 Months revenue growth came in at 29.5%, ahead of DELL’s 18.8%.
- CRNC leads on profitability over both periods – LTM margin of 17.8% and 3-year average of 7.3%.
These differences become even clearer when you look at the financials side by side. The table highlights how DELL’s fundamentals stack up against those of CRNC on growth, margins, momentum, and valuation multiples.
Valuation & Performance Overview
| DELL | CRNC | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 17.0 | 6.5 | CRNC |
| Revenue Growth | |||
| Last Quarter | 39.5% | 126.1% | CRNC |
| Last 12 Months | 18.8% | 29.5% | CRNC |
| Last 3 Year Average | 4.4% | 3.2% | DELL |
| Operating Margins | |||
| Last 12 Months | 7.3% | 17.8% | CRNC |
| Last 3 Year Average | 6.9% | 7.3% | CRNC |
| Momentum | |||
| Last 3 Year Return | 422.0% | -68.8% | DELL |
Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (>300%) which creates risk of sell off.
- Pay Less, Gain More: DELL Tops Apple Stock
- Five-Year Tally: Dell Technologies Stock Delivers $22 Bil Gain
- Is Dell Stock An Under-Analyzed Capital Compounder Opportunity?
- At 20x Earnings, Dell Still Looks Affordable Thanks to AI
- Stronger Bet Than Apple Stock: DELL Delivers More
- Better Value & Growth: DELL Leads Apple Stock
See detailed fundamentals on Buy or Sell DELL Stock. Below we compare market return and related metrics across years.
Historical Market Performance
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| DELL Return | 52% | -27% | 96% | 53% | 11% | 71% | 537% | <=== | |
| CRNC Return | -24% | -76% | 6% | -60% | 36% | -19% | -91% | ||
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 4% | 90% | ||
| Monthly Win Rates [3] | |||||||||
| DELL Win Rate | 75% | 33% | 75% | 75% | 50% | 75% | 64% | <=== | |
| CRNC Win Rate | 58% | 33% | 58% | 50% | 50% | 50% | 50% | ||
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 50% | 62% | ||
| Max Drawdowns [4] | |||||||||
| DELL Max Drawdown | -3% | -39% | -8% | -2% | -38% | -11% | -17% | ||
| CRNC Max Drawdown | -31% | -82% | -20% | -88% | -12% | -44% | -46% | ||
| S&P 500 Max Drawdown | -1% | -25% | -1% | -2% | -15% | -7% | -9% | <=== | |
[1] Cumulative total returns since the beginning of 2021
[2] 2026 data is for the year up to 4/23/2026 (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
No matter how good the numbers, stock investment is never a smooth ride. There is a risk you must factor in. Read DELL Dip Buyer Analyses to see how the stock has fallen and recovered in the past.
Still not sure about DELL or CRNC? Consider portfolio approach.
Portfolios Over Individual Stock Picks
Individual stocks can soar or tank, but one thing matters: staying invested. The right portfolio can help you stay invested, capture upside, and mitigate the downside associated with any individual stock.
The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? HQ Portfolio has posted more than 105% in cumulative return since inception, with less risk versus the benchmark index, as evident in HQ Portfolio performance metrics.